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• W78761008 abstract "Executive Summary A small, family owned and operated construction company, AAA Construction, Inc., is followed throughout its turbulent thirty-eight year history. A five-stage model is employed to chronicle the company's disjointed development, identifying eleven distinct life cycle stages. The findings reveal a lack of lessons learned and a tremendous willingness by the founder to resist change. The study clearly reveals the importance of information processing, decentralized decision-making, succession planning, and market research for diversification. Introduction There has recently been a call in the literature for the expansion of management research into the unique nature of family businesses to fully understand the contribution of the family to a business (Chua, Chrisman, & Steier, 2003). A second goal in the furthering of family business research is to apply mainstream organizational theory to the study of family business (Chua, et al., 2003). Family businesses have been described by Habbershon and Williams (1999) as an interaction between the family and the firm and the resources that result (Sirmon & Hitt, 2003) with the key resource being the family itself. It is the family's decision making in the operation of its firm that separates the family business from all others (Chrisman, Chua, & Zahra, 2003). Of particular interest to family business researchers is the finding that family businesses tend not to make wealth maximization the primary goal of the business (Sharma, Chrisman, & Chua, 1997). One potential explanation of this phenomenon is the inability of many families to separate the goals of the business from those of the family (Alderfer, 1988; Gersick, Davis, Hampton, & Lansberg, 1997). The inability to separate family and business is a theme that emerges in this study. The organization theory stream of research applied to family business is the organizational life cycle. The life cycle model proposes that organizational growth and development is similar to the growth and development of a living organism. Since organizations do experience different stages of development during their lifetimes, one family business is studied in depth to see what lessons can be learned from the practical application of life cycle theory. Much of the life cycle literature is prescriptive or predictive (Adizes, 1989; Churchill & Lewis, 1983; Greiner, 1972; Quinn & Cameron, 1983). If life cycle research is to be useful to ongoing organizations, some practical benefit must be realized. As has been noted by other life cycle researchers (Beverland & Lockshin, 2001), Hanks (1990) has neatly captured the practical essence of the life cycle paradigm: A valid life cycle model could be of great value to those managing growing firms. It could provide a road map, identifying critical organizational transitions, as well as pitfalls the organization should seek to avoid as it grows in size and complexity. An accurate life-cycle model could provide a timetable for adding levels of management, formalizing organization procedures and systems, and revising organization priorities... The benefits of such a model would certainly be great. (p.1) The purpose of this study is to capture the entire history of a family business, identifying those critical transitions, pitfalls, and timetables that Hanks (1990) makes reference to in the preceding quote. The goal is that other family business executives may be able to benefit from the mistakes and successes of AAA Construction, the focus of the study. Based on prior research (Dodge, Fullerton & Robbins, 1994; Hanks, 1994; Lester & Parnell, 1999; Lester, Parnell, & Carraher, 2004; Miller & Friesen, 1984; Mintzberg, 1984), a five-stage organizational life cycle model is utilized to chronicle the entire life span of AAA Construction, Inc., a family construction company. Advocates of strategic choice (Child, 1972) propose that knowledge of an organization's stage of development can assist top managers in choosing appropriately competitive courses of action (Lester & Parnell, 1999). …" @default.
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• W78761008 title "The Complete Life Cycle of a Family Business" @default.
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